As the residence market slows and tips over in many sections of the country, one property sector is still shining. The increase in rents has been staggering in some areas of the country, especially in a strong job growth markets as buyers eek to rent soaking up available supply and pushing multi family cash flow up
The national Multi Housing Council reported on August 2 that although residences have been severely impacted by the sub prime meltdown its been a positive for the multi family sector.
We have tracked this before and its good to see some sectors still shining. The report goes on to say:
"On average, survey respondents reported few changes in the strong market conditions recorded three months ago, with the exception of a significant worsening of debt market conditions.
When asked specifically about the impact of the subprime mortgage meltdown on the flow of apartment residents leaving to become homeowners, 18 percent said that there has been a big decrease and 37 percent noted a small decrease. The continued strong demand conditions suggest that any supply spillover from the excess inventory in the for-sale market into the rental market has not exceeded the growing demand for apartment residences."
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